Key Points
- The Hosteller raised ₹48 crore in Series A funding led by V3 Ventures.
- The round included investments from Synergy Capital Partners, Climber Capital, and others.
- The funds will help expand the brand’s presence across India and increase the number of beds.
- The company aims to grow from 2,500 to 10,000 beds by March 2026.
- The Hosteller competes with other backpacker hostel chains like goSTOPS and Wudstay.
Looma News
The Hosteller, a network of backpacker hostels, has raised ₹48 crore in a Series A funding round to speed up its expansion across India. The round was led by V3 Ventures, with contributions from Synergy Capital Partners, Unit e Consulting, Climber Capital, and Ice VC. Investors included Harsh Shah, Akash Hiren Zaveri, and Vedang Patel.
Out of the ₹48 crore raised, ₹32 crore came as equity funding from V3 Ventures, and ₹16 crore was provided through venture debt by Blacksoil. The new capital will help The Hosteller grow in cities like Rishikesh, Manali, Bengaluru, and Delhi, while also expanding to new travel spots. This growth aims to meet the rising demand from millennial and Gen Z travelers in the post-Covid era.
Pranav Dangi, the Founder and CEO of The Hosteller, shared that the funding will allow the company to offer consistent experiences across India, backed by a tech-first approach. The company plans to increase its bed capacity from 2,500 to 10,000 by March 2026, targeting new markets and gaining more customers in emerging areas.
Founded in 2014, The Hosteller operates over 50 hostels across India and competes with other budget-friendly chains like goSTOPS, Wudstay, and Backpackers Panda.
